Korea Hydro & Nuclear Power Co. Ltd.'s Green Bond Framework

s pglobal.com/ ratings This product is not a credit rating Ju ly 7 , 2023 1 This S&P Global Ratings Second Party Opinion (SPO) represents our opinion on whether the documentation of a sustainable finance framework or program and whether the documentation of a sustainable f inance transaction aligns with certain third -party published sustainable finance principles, guidelines, and standards (“Principles”). For more details please refer to the Analytical Approach and Analytical Supplement, available at spglobal.com under Sustainable Financing Opinions . An SPO provides a point -in-time opinion, reflecting the information provided to us at the time the SPO was created and published, and is not surveilled. We assume no obligation to update or supplement the SPO to reflect any facts or circumstances that may come to our attention in the future. An SPO is not a cre dit rating, and does not consider credit quality or factor into our credit ratings. Second Party Opinion Korea Hydro & Nuclear Power Co. Ltd .'s Green Bond Framework July 7 , 2023 Korea Hydro & Nuclear Power Co. Ltd. (KHNP) is a wholly owned subsidiary of Korea Electric Power Corporation (KEPCO). KHNP engages in the generation and sale of electricity , primarily in South Korea . The company operates nuclear power plants, hydropower plants, and pumped storage hydropower plants across the country . It account ed for 30% of Korea’s power supply in 2022. In that year, KHNP's power generation capacity st ood at 30,030 megawatt s (MW ). In our view, KHNP ’s Green Bond Framework , published in Ju ly 2023 , is aligned with: ✔ Green Bond Principles (GBP), ICMA, 2021 (with June 2022 Appendix 1) Issuer’s Sustainability Objectives As the largest power supplier in South Korea, KHNP has established an environment, social and governance ( ESG ) strategic map that articulat es the company's vision of a sustainable future with clean energy . KHNP's strategy includes strengthening its existing hydropower and nuclear businesses, and expanding operations in solar, wind, and hydrogen power , in both dome stic and international market s. The company aim s to achieve carbon neutrality by 2033 and contribute to Korea's commitment to achieve carbon neutral ity by 2050 . KHNP has developed this G reen Bond Framework to finance projects in solar, offshore and onshore wind, hydropower , and pumped hydropower storage that fit within the company's sustainability objectives. Primary Analyst Shirley Lui Hong Kong + 852 -2912 -3063 shirley.lui @spglobal.com Secondary Analyst Vanessa Lai Hong Kong +852 -2912 -3019 v anessa.lai @spglobal.com Research contributor Mamata Gahan Pune CRISIL Global Analytical Center, an S&P affiliate, Pune

Second Party Opinion s pglobal.com/ ratings This product is not a credit rating Ju ly 7 , 2023 2 Second Party Opinion Summary Use of proceeds Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Score KHNP commits to allocating the net proceeds raised under the framework exclusi vely to finance and refinance eligible green projects in solar, wind , hydropower energy , and storage of electricity , includ ing pumped hydropower storage . Such a framework support s climate change mitigation. Process for project evaluation and selection Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Score KHNP has a green bond working group (G BWG) that comprises senior representatives from various function units. The GBWB is responsible to review the projects in accordance with the framework's eligibility criteria. The company's ESG committee will be responsible for identifying social and environmental risks associated with the projects. In addition, KHNP's eligibility criteria reference the EU Taxonomy technical screening and incorporate quantitative thresholds. Management of proceeds Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. KHNP will establish a g reen b ond r egister to track the proceeds. The company will periodically adjust the tracked net proceeds to match allocations to eligible projects, if necessary. The u nallocated proceeds will be invested in short -term instruments , in accordance with KHNP 's liquidity management policy . Reporting Alignment ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Score Through KHNP's green bond report, the company commits to annual reporting on the allocation of proceeds and the environmental impacts until all the net proceeds are fully allocated. KHNP intends to report both the expected and achieved environmental impacts , as well as the underlying methodologies and assumption . The company also commits to having an independent third -party verify its post -issuance allocation and impact reporting . Aligned Not aligned St r ong Ad v anced Aligned Not aligned St r ong Ad vanced Aligned Not aligned St r ong Ad vanced

Second Party Opinion s pglobal.com/ ratings This product is not a credit rating Ju ly 7 , 2023 3 Framework Assessment Use of p roceeds The Principles make optional recommendations for stronger structuring practices, which inform our alignment opinion as aligned , strong, or advanced. For u se of p roceeds, we consider the commitments and clarity on how the proceeds are used. ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Commitments score We consider KHNP ’s overall use of proceeds commitments to be advanced. KHNP commits to allocat ing the net proceeds raised under the framework exclusively to finance and refinance eligible green projects in renewable energy ( solar photovoltaic, onshore and offshore wind , hydropower , and storage of electricity , including pumped hydropower storage) . The framework mentions that hydropower projects shall meet criteria such as lifecycle greenhouse gas emission intensity of less than 100 grams of carbon dioxide equivalent per kilowatt -hour (gCO2e/kWh) , or the generation facility's power density of more th an 5 watt per square meter (W/m2) . These eligible projects support the environmental objective of climate change mitigation and targeted United Nations' (U.N.) S ustainable Development Goals (SDG) , such as affordable and clean energy (SDG 7) and climate act ion (SDG 13) . They align with KHNP's sustainability strategic plan to grow its clean energy capacity and achieve carbon neutrality by 2033. Moreover, they contribute to a low -carbon transition and support Korea's commitment to carbon neutrality by 2050 . The look -back period of two years f or refinanced projects is shorter and therefore stronger than the market practice of three years. KHNP will also disclose the share of financing and refinancing in its allocation reporting. Process for project evaluation and selection The Principles make optional recommendations for stronger structuring practices, which inform our alignment opinion as aligned , strong, or advanced. For p rocess for p roject selection and evaluation, we consider the commitments and clarity on the process used to evaluate and select eligible projects to fund with the proceeds of the sustainable finance instrument . ✔ KHNP ’s Green Bond Framework is aligned with this component of the GB P. Commitments score We consider KHNP ’s overall process for project selection and evaluation commitments to be strong . The framework describes KHNP 's process to evaluate and select green projects. The company's business units will first screen the potential projects based on their compliance with KHNP's own environmental and social requirements and policy. The GBWG will review and assess the projects based on the eligibility criteria. The GBWG comprises senior representatives from the Corporate Strategy Department, the Public Relations and Investor Relations Department, Business Development Departments, the Finance, Accounting & Tax Office, and the Corporate Sustainability Management , which has a ve to right in the process. The ESG committee, which includes the company's chief executive officer, will identify and manage the perceived or known social and environmental risks associated with the financed projects. Domestic projects will comply with Korea 's Environmental Impact Assessment Act and overseas eligible projects shall follow the International Finance Corporation 's performance environmental and social performance standards. Aligned No t aligned St r ong Ad vanced Aligned Not aligned St r ong Ad vanced

Second Party Opinion s pglobal.com/ ratings This product is not a credit rating Ju ly 7 , 2023 4 The framework includes an exclusionary list : the green bond proceeds will not be allocated to projects involving child labour, weapons, or human right violations. In addition, KHNP's eligibility criteria reference the EU Taxonomy technical screening and incorporate abovementioned quantitative thresholds. Incorporat ing clear eligibility criteria with reference to market -based taxonomies for all eligible project categories is a strong practice. Management of proceeds The Principles require disclosure of the i ssuer ’s management of proceeds from sustainable finance over the life of the funding. The alignment opinion focuses on how clear in the documentation is the issuer’s commitment to ensure that the funds raised will remain dedicated to eligible sustainability pro jects throughout the life of the sustainable finance funding. ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. KHNP will establish a green bond register to track the proceeds and to ensure the aggregate of issuance proceeds allocated to eligible project s is recorded. The register will contain information on the bond (ISIN, pricing date, maturity date) and details of the eligible use of proceeds (brief description, amount of allocation made, estimated impact). Unallocated proceeds will be invested in short -term instruments such as money market instruments or money market deposit s, in accordance with KHNP's liquidity management policy. Short -term investment s will exclude any fossil- fuel related instruments. GBWB will r eview and replace projects that no longer meet the eligibility criteria or are involve d in material environmental, social, or governance controversies. Reporting The Principles make optional recommendations for stronger disclosure practices, which inform our disclosure opinion as aligned , strong, or advanced. We consider plans for updates on the sustainability performance of the issuer for general purpose funding, or the sustainability performance of the financed projects over the lifetime of any dedicated funding, including any commitments to post -issuance reporting. ✔ KHNP ’s Green Bond Framework is aligned with this component of the GBP. Disclosure score We consider KHNP ’s overall reporting practices to be strong . KHNP commits to publish ing a green bond report on an annual basis . The report will provide detail s on the allocation of proceeds and the environmental impacts of invested projects until the full allocation of the net proceeds. The report will be publicly available on the company website. Allocation reporting will include a list of projects with the net amount invested , a brief description of the financed projects, amount of unallocated proceeds , and the share of financing versus refinancing. Environmental impact reporting will include qualitative environmental impact analysis and quantitative performance indi cators , where data is available. KHNP intends to report both the expected and achieved e nvironmental impacts , as well as the underlying methodologies and assumption s. We view this as a strong market practice. The f ramework outlines some examples of i mpact indicators , such as renewable energy generation (in megawatt hour ) or capacity installed (in MW ), and annual greenhouse gas avoided ( in tons of CO2 equivalent per year ). In addition, KHNP commit s to having an independent third -party verification of its post -issuance allocation and impact reporting , adding transparency to the framework. Aligned No t aligned St r ong Ad vanced

Second Party Opinion s pglobal.com/ ratings This product is not a credit rating Ju ly 7 , 2023 5 Mapping To The U .N. 's Sustainable Development Goals The Sustainable Development Goals (SDGs) , which the U.N. set up in 2015 , form an agenda for achieving sustainable development by 2030. We use the International Capital Market Association 's (ICMA) SDG mapping for this part of the report. We acknowledge that ICMA ’s mapping does not provide an exh austive list of SDGs a nd that ICMA recommends that each project category be reviewed individually to map it to the relevant SDG. KHNP ’s Green Bond Framework intends to contribute to the following SDGs: Use of proceeds SDGs Renewable Energy 7. Affordable and clean energy * 13. Climate action *The eligible project categories link to these SDGs in the ICMA mapping.

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